Question #320610
3.) For some interest rate “i” and some number of interest periods “n” the uniform series capital
recovery factor is 0.3091 and the sinking fund factor is 0.1941.
1. Compute the interest rate.
2. If the interest rate i = 12% compounded annually, compute the capital recovery factor
for a period n = 5 years.
3. If the rate of interest i = 16% compounded quarterly what would be the sinking fund
factor for a period of 6 years.
Ans. 1. 11.5% 2. 0.27741 3. 0.02559
Expert's answer
Answer is given below
